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MC Question 13
Formulae & Tables
ACCA PM (F5) Formulae Sheet
You will get this Formula Table at the exam so learn well how to apply it in your ACCA PM (F5) Exam
A company’s sales and cost of sales figures have remained unchanged for the last two years. The following information has been noted:
Year ended | 31 May 2015 | 31 May 2014 |
---|---|---|
Inventory turnover period | 45 days | 38 days |
Payables payment period | 40 days | 35 days |
Receivables payment period | 60 days | 68 days |
Current ratio | 1·3 | 1·4 |
Quick ratio | 1·1 | 1·3 |
The following statements have been made about the company’s performance for the most recent year:
(i) Customers are taking longer to pay and this may have contributed to the decline in the company’s current ratio
(ii) Inventory levels have decreased and this may have contributed to the decline in the company’s quick ratio
Which of the above statements is/are true?
A. (i) only
B. (ii) only
C. Both (i) and (ii)
D. Neither (i) nor (ii)